The stock of Applied Materials Inc. (NASDAQ:AMAT) increased by $0.26 on Monday to $144.62, up 0.18 percent. The last five days have seen an average of 4,480,962 shares of common stock traded. 20 times new highs were reached in the current year, with a gain of $47.27. The average number of shares traded over the last 20 days was 5,010,681, while the average volume over the last 50 days totaled 5,735,844.
AMAT stock dropped -4.81% since last month. On 08/18/23, the company’s shares reached a one-month low of $135.53. The stock touched a high of $153.28 on 07/28/23, after rallying from a low of $71.12 in 52 weeks. The price of AMAT stock has risen by 48.51% or $47.27 this year, reaching a new high 20 times. Still, the stock price is down -5.65% from the 52-week high.
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Insider Transactions
AMAT stock investors should be aware that Applied Materials Inc. (AMAT) stock had its last reported insider trading activity 52 days ago on Jul 07. On Jul 07, SVP, CLO Little Teri A. sold 10,000 shares at $142.00 each. This transaction resulted in the insider making $1,420,000. On Jun 09, Deane Timothy M sold 7,500 shares at a price of US$137.30. After the transaction, the insider now owns 100,759 shares. Senior Vice President, CTO Nalamasu Omkaram had earlier sold 29,444 shares on Mar 20 for $124.70 a share. The transaction was completed for $3,671,667.
Valuation Metrics
Applied Materials Inc. (AMAT) has a trailing price-to-earnings (P/E) ratio of 19.07. Beta for the stock is 1.60. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.52, the price-to-book (PB) ratio of 8.03, and the price-to-cash flow ratio of 17.17.
Company paid $0.32 per share in dividends, remained unchanged from $0.32 last year. A $0.06 dividend increase was reported on Friday March 10 2023.
Financial Health
For the three months ended July 30, Applied Materials Inc.’s quick ratio was 1.60, while its current ratio was 2.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending July 30 is 0.37, and the total debt to equity ratio is 0.38. As far as profitability goes, gross margin for the trailing twelve months is 46.40% percent. Applied Materials Inc.’s EBITDA margin for the year ended July 30 was 31.69%, whereas its operating margin stood at 28.90% for the same period. Based on annual data, it had gross profit of $11.99 billion and revenue of $25.79 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AMAT’s return on assets (ROA) during the last 12 months has been 22.60%. There was a 38.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 47.00%.
Earnings Surprise
According to Applied Materials Inc.’s quarterly financial report for the quarter that ended July 30. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $6.42 billion, while revenues fell by -1.48% to $6.63 billion. It was predicted that Applied Materials Inc.’s quarterly earnings would be $1.9, but it ended up being $1.74, beating the consensus by 9.20%. EBITDA was $1.94 billion for the quarter. At the end of Applied Materials Inc.’s most recent quarter ended July 30, its liabilities totaled 15.32 billion, while its total debt was $6.1 billion. Equity owned by shareholders amounts to $836.53 million.
Technical Picture
Here’s a quick look at Applied Materials Inc.’s (AMAT) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 51.08%, suggesting the stock is Neutral, with a 36.47% historical volatility rate.
The stochastic %K and %D were 53.22% and 60.47% respectively, while the average true range (ATR) was 4.56. Based on the 14-day stochastic reading of 58.39%, the RSI (14) reading is 51.40%. On the 9-day MACD Oscillator, the stock is at -0.01, and the 14-day reading is at 0.61.
Analyst Ratings
In a note to investors, Susquehanna maintained its a Neutral rating on Applied Materials Inc. (NASDAQ: AMAT). However, the firm raised their price target to $128, indicating a possible decrease of -29.13% in the stock price. Analysts have assigned Applied Materials Inc. (AMAT) an Overweight rating. AMAT is a stock that is recommended for selling by 1 brokerage firm, while 9 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 3 rates it overweight and 15 others recommend it as a buy.
What is AMAT’s price target for the next 12 months?
The current consensus forecast for the stock is between $120.00 and $175.00, with a median target price of $160.00. In analyzing these forecasts, the average price target given by analysts for Applied Materials Inc. (AMAT) is $157.43.
